Question

Calculate the value of goodwill as on 1st April,2015 on the basis of 2ଵ

ଶ

years purchase of the average

profits of the last five years. The profits and losses for the years were 2010 Rs80,000; 2011 Rs1,00,000; 2012

Loss Rs30,000; 2013 Rs1,70,000, 2014 Rs1,60,000 and 2015 Rs1,80,000. You are informed that the profits ofthe year ending 31st March 2014 included profit on sale of a fixed asset amounting to Rs50,000 and the profits

for the year 2015 were effected by a loss due to fire amounting to Rs20,000.​

Answer 1

Explanation:

Answer :

Rs. 2,75,000

Solution :

Profit for the year 2010 will be ignored.